However, as a businessman and a pragmatist I do see two areas where conservatives could possibly climb aboard on the free market meddling bandwagon. The two areas are a) infrastructure and the b) the increase in liquidity wherever they can put cash.

First, let’s look at infrastructure. In business, when an investment is made, an accountant or manager determines whether the expenditure is “expensed” or “capitalized". Unlike an expensed item like business lunches and paper clips, a proper capitalized expense, such as real estate or automobiles or computers, does not initially affect the balance sheet. As the benefit of the expenditure is reaped, the asset is then depreciated.

Thus, if the government spends broadly to increase the efficiency of our infrastructure, this above all other expenditures lately, has the greatest chance of not only paying for itself but also benefiting future generations. Lastly, infrastructure along with the common defense and other essentials has always been considered a legitimate government activity amongst the vast majority of all parties that ever existed in America.

So highway and infrastructure expenditures will not only help now but help for generations to come.

Next, let’s discuss the liquidity issue. During times of deflation (which 98% of experts say we are in) even my hero, Milton Friedman, agreed that increasing the money supply during these times is important and correct. So don’t be so quick to scream “Keynes!!". Ultimately, inflation will come. But one way debt is attacked, so said Friedman is through inflation. I believe this is true with consumers as well as the government.

We are in very weird times. I don’t like Obama or his obvious world view, but the panic that the American people and business community is experiencing compels us to wish him the best for our own sake. He better not screw this up.

It may be one of the best I have read so far this year as it puts this election into real and firm perspective.

NOTE: I copied this message from a Sowell column...

"
'Change' Can Lead to Catastrophe

Tuesday, October 21, 2008 12:33 PM

By: Thomas Sowell

Telling a friend that the love of his life is a phony and dangerous is not likely to get him to change his mind. But it may cost you a friend.

It is scary to contemplate the impending political dominance of the very most left wing elements of the Democratic party in the presidential election.

The issue here has nothing to do with liberal or conservative bias. We all know that 90%-plus of the media are self-avowed Democrats as shown in many studies. Republicans have always dealt with that.

There is nothing wrong with a journalist writing a book about something she knows and about which she can report. The problem is that the book is clearly pro-Obama and here is the Amazon listing…

The problem here is that she now stands to gain financially from Obama being elected which makes her ability to moderate the debate in question.

Even if she pounds hard on Biden, it would be seen skeptically as her over-compensating.

It is in the interest of both campaigns and Gwen Ifill to remove herself from this debate.

The mere appearance of impropriety will color everyone’s ability to discern the questions and the quality of the answers. That must be removed from this debate.

By the way, as a Palin supporter, I would think this disclosure about Ifill actually helps Palin because it will have a chilling effect on Ifill’s questions. However, it is important that these debates come off appearing as fair to the American public or it will be a useless folly to even have the debate.

To all you Obama supporters, what if the shoe were on the other foot?

I will follow-up on Friday with whatever happens.